Despite of expectations of reduced prices for slab exports in Brazil (due to the increased tonnages available for exports), the last deals closed indicate prices in the $500/mt range, FOB terms for the base commercial grades.
According to a major producer, such prices have been stable over the last two months, although the lackluster domestic demand for steel products could result in more tonnages available for export and the consequent reduction of prices.
“But such reduction would be limited, as we are already operating under low profit margins,” the source said, adding that the company maintains preference to process the slabs and serve the domestic market.
Last month, Brazil exported 329,000 mt of slabs at an average FOB price of $508/mt.